high ltv refinance: quick facts and what to expect

What it means

A high loan-to-value refinance lets homeowners replace an existing mortgage even when the equity cushion is thin. Lenders weigh risk, but credit score, payment history, and property type can still open doors.

Why people consider it

Borrowers use it to lower monthly payments, shift from an adjustable to a fixed rate, or consolidate a costly second lien. In some cases, a refinance can remove mortgage insurance once values improve, though timing matters.

What to expect in the process

Expect tighter documentation and possibly a higher rate or fees to offset risk. An appraisal or AVM may be required, and reserves help. Compare offers: one lender’s overlays may be another’s green light.

• Eligibility: Loan seasoning, occupancy, and LTV caps vary by program.
• Costs: Points, title, and third-party fees; check breakeven in months.
• Rate: Pricing hits often apply above certain LTV tiers.
• Alternatives: Streamline, modification, or waiting for equity growth.

Run the numbers with taxes and insurance included. If the payment relief is real and the horizon is long enough, a high LTV refi can be a practical reset.